Wednesday, July 18, 2007

Broken China

Beijing can't clean up the environment, rein in stock speculation, or police its companies. Why the mainland's problems could keep it from becoming the next superpower

OH Nooooo -- they're out of control!!! A culture of corruption unwilling to truly change but always ready to put on a show.... and that's Communist China for you.

Business Week June 12, 2007 - ...If this reformist agenda fails, watch out. The working assumption from Washington to Tokyo is that China is on a trajectory to become a modern market economy and a responsible global citizen. But if its problems persist, the world will have to keep living with a giant trade partner that can't guarantee safe products, control piracy, or curb pollution. China could keep growing rapidly for years, but a scenario of dysfunctional administration calls into question whether it will really become an economic superpower with world-beating corporations that challenge the West in innovation—a Japan Inc. on steroids.

China doesn't lack the finances to fix its shortcomings, and it has the legal structure for regulating the environment, health care, and worker safety. What Beijing does lack is the will to overhaul a political structure that gives party officials down to even the smallest villages huge influence over many facets of economic life. "The laws in China compare with some of the best in the world," says activist Liu Kaiming, founder of the Migrant Workers Community College in Shenzhen. "But it is not able to enforce the laws fully because local governments are focused on pleasing the big bosses in companies." What's more, few mainland enterprises are proving they can move beyond low-cost commodity goods and succeed on a global stage with innovative products, a function of both their limited managerial vision and flawed high-tech policies from Beijing. (more)

OLYMPIC WATCH: Human Rights in China and Beijing 2008

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